Luštica Development has started wastewater infrastructure works for a new residential phase within the The Peaks golf district at Luštica Bay near Tivat, preparing the site for 13 villas and golf houses with a planned combined above-ground gross floor area of 3,373.82 square metres.
The works represent an infrastructure milestone within the wider €1.6bn Luštica Bay master plan, but do not mark the beginning of construction of all planned residences. The current phase covers the wastewater-disposal system required before the buildings can move forward.
Infrastructure preparation includes systems that determine whether future properties can be constructed, occupied and connected to municipal services, including wastewater, water supply, electricity, telecommunications, roads and other supporting facilities.
Wastewater infrastructure phase begins
Luštica Development submitted the construction commencement notice on July 31, 2026, while the Ministry of Spatial Planning, Urbanism and State Property recorded the notice on August 3. The works are planned on part of urban plot UP 1, created from cadastral parcel 1043/74 in Radovići, within the amended detailed urban plan covering Golf and Donji Radovići West. The wastewater construction permit was issued on July 25, 2025, meaning that approximately one year passed between the approval and the start of execution. The value of the infrastructure contract, completion deadline and planned construction schedule for the 13 residences have not been disclosed.
The contractor for the wastewater works is North Star MNE from Herceg Novi, while professional supervision will be carried out by CAU – Centre for Architecture and Urbanism from Podgorica. The wastewater design was prepared by Vigoris Ecotech, with technical documentation reviewed by the Institute for Development and Research in Occupational Safety.
New residential phase includes 13 buildings
The residential phase, designated as I-b2, includes 10 villas and three golf houses. The planned above-ground gross developed area totals 3,373.82 square metres, while the total building footprint covers 2,626.25 square metres. The planned structures will consist of basement and ground-floor configurations or ground floor plus one upper level. Architectural elements include silicate render, traditional Luštica stone, tiled pitched roofs and flat green-roof sections.
The architectural design was prepared by NRA Atelier from Podgorica, and approval from Montenegro’s chief state architect was obtained in April 2024. The plot is intended for type-two golf villas. Planning rules allow both detached buildings and attached structures containing between two and five accommodation units, giving the developer flexibility in adjusting the final unit structure.
Long-term development of Luštica Bay continues
The new infrastructure works form part of the broader transformation of Luštica Bay into an integrated residential and tourism destination. The project is being developed across approximately 6.9 million square metres on the Luštica peninsula by Luštica Development, which is controlled by Orascom Development Holding. The Montenegrin state holds 12.24% following the conversion of state receivables into shares. Government data show that approximately €637.4mn had been invested in Luštica Bay from the beginning of construction in December 2013 through mid-2025. Investment during the first six months of 2025 reached €62.8mn. Official assessments indicate that approximately 11% of the full master plan had been physically delivered by mid-2025.
At that time, Luštica Bay had completed around 450 apartments, 13 houses and seven villas, alongside the 111-room The Chedi Luštica Bay, a smaller 31-room hotel in Centrale, 25 commercial units, five beaches and a marina with approximately 121 berths. More than 1,000 properties had reportedly been sold across different residential phases. Taxes paid since construction began reached approximately €48mn, while employment across the destination expanded into several hundred permanent and seasonal positions. The long-term development plan includes more than 3,000 apartments, over 300 villas, multiple hotels, two marinas, retail facilities and social infrastructure, with a planned permanent population of several thousand residents.
The Peaks positioned as golf-led residential district
The golf district represents the next stage of Luštica Bay’s development, creating a premium residential area separate from the existing marina waterfront.
While Marina Village established value through direct waterfront access, The Chedi hotel and marina facilities, The Peaks is designed around golf frontage, elevation and views of the Adriatic Sea and the Bay of Kotor.
The planned 18-hole championship golf course, designed by Gary Player Design, is expected to become Montenegro’s first full-scale golf course. The first three holes have already been formed, with completion of the entire course scheduled for the end of 2028 and commercial opening planned for the 2029 season. The wider golf and residential investment programme was previously presented at approximately €400mn over six years, covering The Peaks residences, internal roads, utilities, landscaping, club facilities and future hospitality elements.
A larger golf hotel is planned for the district, with capacity exceeding The Chedi Luštica Bay and facilities intended for leisure, wellness, conferences and corporate groups.
Investment model relies on infrastructure and property development
The current wastewater works represent a small part of the overall master plan but enable another section of the peninsula to become serviced construction land. Infrastructure completion supports the transition of planned developments into buildable and saleable residential inventory.
Selected residences at The Peaks are already marketed in the high hundreds of thousands of euros, with larger properties reaching multi-million-euro price levels. Public listings for some apartment and townhouse formats have indicated prices of approximately €859,000 to more than €1.4mn, while villa prices depend on size, plot characteristics, views and location relative to the golf course.
No official price schedule has been published for the 13 new buildings. The state’s participation in the project increased after approximately €4mn of debt was converted into equity, raising its ownership share to 12.24%. Luštica Bay is developed on leased state land under agreements covering construction, investment and ownership rights, making infrastructure delivery and compliance with the master plan key elements of the project’s long-term implementation.
Tivat tourism market supports further development
The project is advancing as Tivat records stronger tourism performance. The municipality registered 10,870 tourists in early August 2026, an increase of 8% compared with both 2025 and 2024. Hotel occupancy was 15% higher year on year and 48% higher compared with 2024, indicating stronger demand for organised accommodation.
Tivat Airport handled 490,020 passengers during the first half of 2026, up 10.4% from the same period a year earlier. Passenger traffic in June increased 18.6% to 217,322 passengers. Improved air connectivity supports the market for premium tourism and residential demand at Luštica Bay, although airport terminal capacity and access-road limitations remain constraints on further growth.
The golf district is expected to contribute to reducing tourism seasonality by attracting visitors during spring and autumn periods when coastal demand is lower. The commercial performance of the golf component will depend on air connectivity, service standards and the ability to attract both international visitors and regional customers outside the peak summer period. The start of wastewater infrastructure works for the 13 residences represents another stage in converting The Peaks into a serviced residential district within Luštica Bay’s long-term development programme.
